Activity 3: Accounting for Disbursements and Related Transactions

Purchase price 4,950,000.00

Div: Units (Buy 5 take one free) 6
Cost per unit 825,000.00

Particulars Account Code

Cash - TRA 10104070
Subsidy from National Government 40301010
Constructive receipt of NCA for withholding tax.

Accounts payable 20101010

Cash - MDS, Regular 10104040
Due to BIR 20201010
Payment of accounts payable.
Due to BIR 20201010
Cash - TRA 10104070
Remittance of withholding tax throught TRA.

Purchase price 12,000.00

Less: FV of Promotional item 1,200.00
Div: Units
Cost per unit

Particulars Account Code

Furniture and fixtures 10607010
Accounts payable 20101010
Purchase of furniture and fixtures.

Office equipment 10605020

Accounts payable 20101010
Receipt of promotional item.

Accounts payable 20101010

Cash - MDS Regular 10104040
 Due to BIR 20201010
Payment of accounts payable.

Due to BIR 20201010

Subsidy from national government 40301010
Remittance of withholding tax to BIR.
Debit Credit
297,000.00
297,000.00

4,950,000.00
4,653,000.00
297,000.00
 297,000.00
297,000.00

10,800.00
6
1,800.00

Debit Credit
10,800.00
10,800.00

1,200.00
1,200.00

12,000.00
11,280.00
 720.00

720.00
720.00